KLAYswap Is Raid Due To Suspected Laundering About $2.7M For Kim Nam-guk

Key Points:

• South Korean prosecutors have searched and investigated the Klayswap trading platform on suspicion of being involved in the money laundering activities of lawmaker Kim Nam-guk.
• Prosecutors suspect he could launder dozens of altcoin transactions through the trading platform.
• According to previous news, Kim Nam-guk, a member of the Democratic Party of Korea, is involved in a cryptocurrency scandal worth about $4.55 million.

The Criminal Division of the Seoul Southern District Prosecutor’s Office of South Korea this morning conducted the arrest and search of the operator of the KLAYswap cryptocurrency exchange platform on suspicion of congressman Kim Nam-guk’s cryptocurrency scandal, according to South Korean media Chosun Ilbo.

Reportedly, Congressman Kim made dozens of altcoin transactions through KLAYswap. The prosecutor suspected that he could launder money through these transactions, so its managers were arrested and searched this platform provided this cryptocurrency service.

The platform provides a virtual currency exchange service where the user can act as a ‘liquidity provider (LP)’ exchanging (swapping) coins like a virtual currency exchange. In this way, Congressman Kim exchanged 510,000 Wemix coins worth 3.6 billion won, or about $2.7 million, with KPS tokens on February 16 last year.

The KSP token is the governance token of the KLAYswap platform. Owners have the responsibility and authority to define governance programs that adhere to protocol-related rules and regulations to lead the development of the service.

South Korean prosecutors raided cryptocurrency exchanges Upbit and Bithumb on May 15 to investigate the cryptocurrency scandal of independent lawmaker Kim Nam- guk when he was announced with digital wallets on Upbit and Bithumb.

According to previous news, Kim Nam-guk, a member of the Democratic Party of Korea, is involved in the cryptocurrency scandal. Congressman Kim is said to have held 800,000 WEMIX when he proposed to postpone the tax on virtual assets such as cryptocurrencies by 2021. The peak price exceeded 6 billion won (about $4.55 million).

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